Veerasith Sinchareonkul, Chief Executive Officer of Sri Trang Agro-Industry Public Company Limited, or STA, the world's largest fully integrated natural rubber producer and distributor, told the Stock Vision news team that the outlook for natural rubber prices in the second half of 2026 remains strong. SICOM rubber prices are currently around 259 to 260 cents per kilogram, and the direction of crude oil prices remains the key factor to watch. If geopolitical conflicts drag on or intensify, that would support prices holding at high levels. Buying demand remains normal and continuous, with STA's overseas sales accounting for as much as 90% of the total, and China as its main market at about 50%. Maximum production capacity based on machinery stands at about 2.9 million tons per year, while actual sales volume is about 1.5 million tons per year, representing a market share of roughly 30% to 40% in Thailand and about 10% to 12% globally, against total global natural rubber supply of about 15 million tons per year. As for the EUDR standard, the European market currently demands rubber meeting this standard at about 30% of the global market. STA is ready to produce about 40,000 tons of EUDR-compliant rubber per quarter and can expand to 60,000 tons per quarter. If the European Union announces enforcement without postponement, this is expected to boost demand and help margins improve. In the rubber glove business, global demand has returned to normal and is trending toward average growth of about 5% per year, with the global market requiring about 400 billion pieces per year. STA has production capacity of about 48 billion pieces per year and plans to invest about 2 billion to 4 billion baht to install automated machinery, which is expected to be completed and operating at full efficiency within the next one to two years.
Sri Trang Agro-Industry Public Company LimitedSTA expects strong rubber prices and says EUDR enforcement would boost demand and improve margins, with it ready to supply 40,000-60,000 tons of compliant rubber per quarter.
STA's CEO says natural rubber prices will stay strong in H2 2026, supported by normal continuous buying demand and potential EUDR-driven European demand.
